2018 tax on payroll

[TimD]

We have PowerChurch 11.5 and we just updated our tax withholding for 2018 from the IRS as it was just recently released. We did our January payroll from the old tax table and are wondering if PC will automatically adjust the taxes to what is owed for January to the new 2018 amounts or do we need to calculate the difference for January and make an adjustment on each paycheck for what is owed from January 2018 on the February 2018 paychecks?

[NeilZ]

We have PowerChurch 11.5 and we just updated our tax withholding for 2018 from the IRS as it was just recently released. We did our January payroll from the old tax table and are wondering if PC will automatically adjust the taxes to what is owed for January to the new 2018 amounts or do we need to calculate the difference for January and make an adjustment on each paycheck for what is owed from January 2018 on the February 2018 paychecks?

No .. withholding is NOT retroactive to the beginning of the year, however, any excess withholding will be returned when the employee files their 2018 taxes next year. The IRS made that perfectly clear in December before they were able to get the new tax tables out.